Why would you want to cripple our economy further by forcing an improving Real Estate Market to hit bottom again? It is common sense that the 20% rule will hinder a lot of people who CAN afford a home from buying. And if the fees are going to be so outrageous for anyone not putting 20% down you might as well consider those deals dead as well. Rather than over-correcting a single issue, why not implement some common sense practices that focus on the full picture: credit history, income, job history, and existing debt? In other words, use the borrowers ability to repay the loan as the guide for whether or not the loan is safe